Tell HMRC about a new employee

4. Student loan repayments

You should make student loan deductions if any of the following apply:

your new employee’s P45 shows that deductions should continue

when you ask, your new employee tells you they’re repaying a student loan

HM Revenue and Customs (HMRC) sends you form SL1 and your employee earns more than £17,335 a year (£1,444 a month or £333 a week)

What you need to do

If your new employee needs you to make student loan repayments, record this in your payroll software. It will automatically calculate and deduct repayments from their pay at 9% of their income over £17,335 a year. (There will be a new income threshold from 6 April 2016.)